Clutha ratepayers have reacted favourably to proposed changes to rates on home businesses.
The Clutha District Council met in Balclutha yesterday to discuss details of its latest annual plan, before consultation begins on Monday.
Among items discussed was a proposed update to the council’s policy on secondary, separately used or inhabited part of a rating unit (SUIP) rates.
SUIPs became a matter of controversy in August last year, after several ratepayers running home businesses complained to the council about a doubling of their total rates due to the existing policy.
The changes proposed would allow a 50% remission for some home businesses’ secondary units, on the uniform annual general charge (UAGC), water supply targeted rate and wastewater targeted rate.
Lawrence home business Bean Jazzed Coffee & Kitchen owner-operators Leanna and Nick Salt said although they awaited clarification on some aspects of the final policy, they were happy with the changes.
"We haven't been able to dissect it fully yet [but] the charges that they have addressed are the ones we were most concerned about so we would be happy with this outcome ..." Mrs Salt said.
She said their issue had not been with paying an additional rate to reflect business use, but with the level of that rate as a full additional charge despite the business being in their home.
"We recognise that there should be some additional charge, but not what is being charged at the present time."
Councillors at yesterday’s meeting approved the new policy for consultation.
Presenting the policy for discussion, council chief executive Steve Hill said it was complex, but achieved its aims.
"We’ve worked through all the iterations and tried to test it for the problem areas, and had it checked legally. It’s complex, but it achieves what councillors were looking to achieve."
Councillor Mel Foster said, despite reading the new guidelines several times, she remained confused as to how they would be applied to certain types of property.
Mr Hill said a six-step process had been formulated that would allow staff to ascertain whether properties were liable for a SUIP and, if so, whether they would be eligible for remission.
However, he acknowledged the policy could be simplified for ratepayers.
"Clearly from a ratepayer perspective, it’s not yet as clear as it might be. We’ll provide some examples for ratepayers to illustrate how it works and make those available in a brochure."
Public consultation will end on April 21, the finalised annual plan to be adopted on June 23.
